EUR / GBP Technical Analysis Oct 17

Can the sellers force the EURGBP lower at 0.9021?

The EURGBP has been mostly oscillating, since the 11th of October 2016, within a bearish formation between the range of 0.9140 and 0.8948 respectively.

Both the buyers and the sellers are now placing strong pressures in their attempts of taking control over the pair’s price.

The price is now oscillating slightly above the 0.9021 zone which is today’s major pivot point area.

Probable Scenario

In the condition where the pair drops and stabilizes below the 0.9021 area, the price could be forced to decline to lower zones such as the 0.8948.

The Stochastic oscillator also confirms that the price has greater chances to retrace and decline at the 70 level.

eurgbp-oct-17-2016

Alternative Scenario

Alternatively, should the buyers lead the price above the 0.9067 area Fibonacci’s 23.6%, the pair could appreciate as high as 0.9140 Fibonacci’s 0.0%.

Today’s Major Announcements

  • The euro zone’s Consumer Price Index – Core (YoY) (Sep), the Consumer Price Index (YoY) (Sep) and the ECB President Draghi’s Speech releases are expected to have a strong impact on the euro
  • There are no any releases on the sterling

Synopsis

·         Probable trend (Bearish): 0.9021

·         Bearish take profit target: 0.8948

·         Stop loss target: 0.9067

·         Alternative trend (Bullish): 0.9067

·         Bullish take profit target: 0.9140

Ben Myers

Ben began his long career in international finance and investing after graduating with a degree in Finance & Accounting. Prior to founding a financial advisory firm he worked with multi-national institutions including HSBC and Bank of Ireland. After several stints as a chief analyst at forex/binary options companies Ben still remains a keen trader and featured contributor on numerous financial sites.